HCC Dividend Type Payments

Warrior Met Coal, Inc. dividend

Although HCC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Warrior Met Coal, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

Warrior Met Coal, Inc. (HCC)
Bid Ask Last Change Volume P/E Market Cap
54.00 56.27 54.93 -0.93 1.4M 7.7 2.9B

HCC Dividend-Like Income Using Covered Calls

With HCC at 54.93, here's a table showing how big the annual "dividend" (i.e. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield Annual Premium Cents/Day
3% 1.65 0.5
5% 2.75 0.8
10% 5.49 1.5

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On HCC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 17 60.00 0.95 29 3.3 3.73 (6.8%)
Apr 17 60.00 2.45 119 2.1 3.73 (6.8%)
5% Yield On HCC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 17 60.00 0.95 29 3.3 3.73 (6.8%)
Apr 17 60.00 2.45 119 2.1 3.73 (6.8%)
10% Yield On HCC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 17 60.00 0.95 29 3.3 3.73 (6.8%)
Apr 17 60.00 2.45 119 2.1 3.73 (6.8%)

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Want more examples? HCAT Dividend | HCI Dividend